Proxy Votes Explained

By December 4, 2020Body Corporate Basics

What is a Proxy Vote?

At general meetings owners can appoint another person who they want to represent them. This may be due to a variety of reasons such as the owner being unable to attend a meeting, or their proxy has a better understanding of the motions being voted on.

A proxy:

  • can be given by anyone who has the right to vote at a general meeting
  • must be a named individual
  • cannot be transferred to a third person
  • ends at the end of the body corporate’s financial year (unless a shorter period is listed on the proxy from).

A person cannot hold any more than a certain number of them, depending on the Module they are regulated by. Additionally, proxies cannot be used to vote on certain motions.

 

Restrictions on Proxy Votes

How may proxy votes can someone hold?

For schemes with fewer than 20 lots, an owner can only hold one proxy. So, for example, an owner may cast a vote themselves and for ONE other additional person as a ‘proxy’ vote.

If there are more than 20 lots, proxies are capped at:

  • 5% of the lots in the Standard Module
  • 10% of the lots in the Accommodation Module

For schemes registered under the Commercial Module and the Small Schemes Module, there is no restriction on the number of proxies a person can hold at a general meeting.

A body corporate manager or an associate of a body corporate manager cannot be appointed as a proxy.

 

What You Can’t  Use Proxies to Vote On?

You cannot use proxies to vote on certain motions and this includes:

  • Committee elections
  • Engaging a Body Corporate Manager
  • Engaging a service contractor
  • Authorizing a person as a letting agent
  • On a motion decided by secret ballot

Furthermore, a proxy vote cannot vote on a ballot where the owner has submitted a written vote on that motion.

Prohibiting Proxy Votes

The body corporate may prohibit the use of proxy votes in the scheme by passing a motion at the general meeting.

 

Nominating a Proxy Vote

Proxies need controls to ensure that the representation is valid and accurate. In Queensland, there is a prescribed proxy form which needs to be completed and submitted to your Body Corporate Services branch.

To alert the body corporate that someone will be attending in your place, you need to appoint a proxy by filling in a proxy form (link)

The proxy holder must be specifically named on the form and it cannot be transferred to a third person.

A proxy cannot be perpetual. In fact, they have an expiry date which is either:

  • A general meeting to be held on a specific date
  • All general meetings held before a specific date
  • All general meetings held during the rest of the body corporate’s financial year unless the appointment is withdrawn

If you are going on holiday, or will be away on business when a general meeting has been called, you can specify dates that proxy is ‘active’

For further information on voting, proxies and how they work, get in touch with a Stratacare Body Corporate Manager. You can also visit the Queensland Government website.

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